- Apr 9, 2021 1:10 am GMT
Rice acquisition Corp., a SPAC company focused on energy acquisitions, has acquired Aria energy and Archaea energy and combined them to form Archaea energy, a renewable natural gas giant valued at $1.15 billion in the markets. The market for renewable natural gas is still small but SoCal utilities are pushing it as an important part of the plan to bring California's carbon emissions down to zero by 2050. Renewable natural gas has its critics, who claim that it isn't environment-friendly and harms communities of color.
As with most SPACs, there is a disconnect between existing revenues and valuations. Aria and Archaea had combined revenues of $40 million last year, meaning their market valuation is approximately 30 times their current revenue figures. Rice's pedigree should come in handy for the company to generate business leads: Daniel Rice IV was CEO of Rice Energy, which combined with EQT to form the US's biggest natural gas driller.
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